Announcement of Fourth Motorcycle Plant Construction in Indonesia

March 13, 2012 - PT Astra Honda Motor (herein after called as "AHJ"; President Director: Yusuke Hori), Honda's joint venture company in Indonesia responsible for motorcycle production and sales, determined to build the Fourth Motorcycle Plant that produces scooter model exclusively with 1,100,000 units production capacity per annum, in order to satisfy the vigorous demand of remarkable Indonesia markets.

Aerial photo of Bukit Indah Industrial Park

The annual production capacity of AHJ through the construction of Fourth Plant including the existing First, Second and Third Plant will become 5,300,000 units in total, and AHJ is continuing to establish the production system throughout the concept of "To supply 100% good products, with speed, affordability, and low carbon". This plant, which will be built in Bukit Indah Industrial Park about 70 kilometers east from central of Jakarta, is planned to start the operation in the autumn of 2013. The investment amount for the new plant is approximately 3.128 trillion Indonesian rupiah (approximately 27.5 billion yen), and AHJ plans to employ around 3,000 new employees, so in total the employees will become around 21,000 associates altogether with the existing plants. Reduction of CO2 emissions, utilization of the natural power sources by wind power generator and solar power generator, and adoption of automation at process are also tackled positively for this new plant, aimed to be an environmental green plant for employees, community and natural environment.

The motorcycle market of Indonesia is the world's third-biggest market next to China and India, and the further expanding demand is expected on the back of the steady economic basis in recent years. The total market of motorcycle in 2011 reached 8.01 million units as the highest ever and became 109% compared with last year. The sales achievement of AHJ in 2011 updated to record the highest volume in history with around 4.27 million units and exceeds the growth of market by 125% compared with last year sales. For 2012, the total market is expected to be expanding approximately 8.7 million units and AHJ is planning to sell around 4.8 million units.

Honda's motorcycle production capacity in the Asia Oceania region currently reached 11.5 million units in total. The production bases in Asia Oceania region are expected to expand further capacity with the vigorous motorcycle demand on the back of economic growths, besides as export base globally. Honda continues expanding the Joy of Customer in the future, from the commuter (small size) types that play an essential role in daily life of customer to motorcycles with high pleasure that equipped with advanced technology to satisfy the global widespread needs of customers.